Overall AIR gets a fundamental rating of 5 out of 10. We evaluated AIR against 72 industry peers in the Aerospace & Defense industry. AIR has only an average score on both its financial health and profitability. AIR has a decent growth rate and is not valued too expensively.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year AIR was profitable.
AIR had a positive operating cash flow in the past year.
In the past 5 years AIR has always been profitable.
In the past 5 years AIR always reported a positive cash flow from operatings.

1.2 Ratios

AIR's Return On Assets of 2.90% is in line compared to the rest of the industry. AIR outperforms 56.16% of its industry peers.
AIR's Return On Equity of 6.03% is in line compared to the rest of the industry. AIR outperforms 54.79% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.32%, AIR is in the better half of the industry, outperforming 71.23% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AIR is in line with the industry average of 8.63%.
The last Return On Invested Capital (8.32%) for AIR is above the 3 year average (7.36%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	2.9%
ROE	6.03%
ROIC	8.32%

ROA(3y)2.32%

ROA(5y)2.84%

ROE(3y)4.33%

ROE(5y)4.83%

ROIC(3y)7.36%

ROIC(5y)6.95%

1.3 Margins

AIR has a Profit Margin (3.17%) which is comparable to the rest of the industry.
AIR's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 9.40%, AIR perfoms like the industry average, outperforming 57.53% of the companies in the same industry.
AIR's Operating Margin has improved in the last couple of years.
AIR has a Gross Margin of 19.29%. This is in the lower half of the industry: AIR underperforms 64.38% of its industry peers.
AIR's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	9.4%
PM (TTM)	3.17%
GM	19.29%

OM growth 3Y14.65%

OM growth 5Y34.25%

PM growth 3Y-52.86%

PM growth 5Y16.72%

GM growth 3Y3.32%

GM growth 5Y7.87%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AIR is destroying value.
The number of shares outstanding for AIR has been increased compared to 1 year ago.
AIR has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, AIR has an improved debt to assets ratio.

2.2 Solvency

An Altman-Z score of 3.55 indicates that AIR is not in any danger for bankruptcy at the moment.
AIR has a Altman-Z score (3.55) which is in line with its industry peers.
AIR has a Debt/Equity ratio of 0.61. This is a neutral value indicating AIR is somewhat dependend on debt financing.
AIR has a Debt to Equity ratio of 0.61. This is in the lower half of the industry: AIR underperforms 65.75% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.61
Debt/FCF	N/A
Altman-Z	3.55

ROIC/WACC0.79

WACC10.5%

2.3 Liquidity

A Current Ratio of 2.84 indicates that AIR has no problem at all paying its short term obligations.
AIR has a Current ratio of 2.84. This is comparable to the rest of the industry: AIR outperforms 56.16% of its industry peers.
AIR has a Quick Ratio of 1.31. This is a normal value and indicates that AIR is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.31, AIR perfoms like the industry average, outperforming 43.84% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	2.84
Quick Ratio	1.31

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

AIR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.72%, which is quite impressive.
The Earnings Per Share has been growing by 12.75% on average over the past years. This is quite good.
The Revenue has grown by 15.40% in the past year. This is quite good.
AIR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.06% yearly.

EPS 1Y (TTM)26.72%

EPS 3Y17.57%

EPS 5Y12.75%

EPS Q2Q%31.11%

Revenue 1Y (TTM)15.4%

Revenue growth 3Y15.17%

Revenue growth 5Y6.06%

Sales Q2Q%15.92%

3.2 Future

AIR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.19% yearly.
AIR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.07% yearly.

EPS Next Y22.08%

EPS Next 2Y19.47%

EPS Next 3Y18.19%

EPS Next 5YN/A

Revenue Next Year18.09%

Revenue Next 2Y14.21%

Revenue Next 3Y11.37%

Revenue Next 5Y1.07%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 24.02 indicates a rather expensive valuation of AIR.
Compared to the rest of the industry, the Price/Earnings ratio of AIR indicates a rather cheap valuation: AIR is cheaper than 89.04% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.32. AIR is around the same levels.
Based on the Price/Forward Earnings ratio of 19.03, the valuation of AIR can be described as rather expensive.
95.89% of the companies in the same industry are more expensive than AIR, based on the Price/Forward Earnings ratio.
AIR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	24.02
Fwd PE	19.03

4.2 Price Multiples

AIR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AIR is cheaper than 89.04% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	15.07

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of AIR may justify a higher PE ratio.
AIR's earnings are expected to grow with 18.19% in the coming years. This may justify a more expensive valuation.